Computers: Wearing Out the Insulation

When their industry was in its youth,
computer men lived in a world of their own, immune to most of the
gyrations of the rest of the economy. Now the industry is well
established, and to its dismay is no longer insulated from such
problems as the general business slowdown, reductions in federal
contracts, stiffening competition and tight money.

Last week, for example, Control Data Corp. of Minneapolis announced that
it had suffered "substantial" losses in computer operations in the
first quarter, and would lay off an unspecified number of workers
throughout the nation. The company specializes in making very...